Housing infrastructure within Budget is crucial to future economic stability, claims Propertymark

Propertymark, the UK’s leading professional body for estate and letting agents, has provided its thoughts on recent speculation regarding taxation and what the crucial needs for the housing market are ahead of the upcoming Autumn Budget.

Considering the economic turbulence of the past few years, combined with the challenge of balancing future needs within the housing sector, this will likely mean there is a fine line for the Chancellor to walk within the Autumn Statement.

Although there has been a strong degree of confidence returning to the housing market since the start of the year, it will require a steady steer to convert the current recovery phase into lasting stability and growth.

With a population expected to surge to around 70 million people within five years, it is imperative to witness the pledge of nearly two million new homes kickstarted into action. The Budget must contain detail on plans to upskill the necessary workforce needed to bring government housing plans to life, as well as ensure those already within the housing system are provided with a sustainable taxation structure that allows flexibility.

Within any proposals it would be positive to see careful consideration paid to Stamp Duty thresholds, especially concerning first time buyers, and from an investment viewpoint, close attention regarding Capital Gains Tax to help attract future investment from landlords in the rental sector to support ever multiplying demand.

Plans must promote investment to help keep pace with upcoming demand, and there must be provision to ensure groups such as ‘first time buyers’ and ‘last time buyers’ are supported to ensure available housing stock is used to its full potential.

It also remains important to have a fiscal structure that ultimately serves the needs of renters equally well, especially considering there is about to be a vast evolution to the private rented sector via the Righters’ Rights Bill. Many landlords continue to face ever-increasing expenditure, and it is imperative that there is focused support for private landlords across the UK to ensure high quality housing stock remains tightly aligned with growing demand.

In addition, there needs to be a clear pathway of support available to meet demands on aspects such as achieving net zero, plus careful provision to ensure the entire housing market remains driven by real world insight and creating cross party cooperation on solving the housing crisis to ensure continuity should there be any change of government down the line.

There must also be very careful consideration on how available land is utilised moving forwards, ensuring brownfield areas are fully prioritised before dipping into greenbelt land, and that there is robust wider infrastructure to support such developments.

Nathan Emerson, CEO of Propertymark, comments:
“The housing sector is about to witness one of the biggest overhauls in over thirty years through the Renters’ Rights Bill and it’s important all future budgetary plans pay close attention to the most fundamental requirement of society – ensuring people have a secure roof over their head.

“It also crucial to ensure there is a sustainable mix of housing available and that homes are affordable regardless of whether people choose to purchase or rent.

“The private rented sector is pivotal in housing the nation with around 4.6 million homes in England alone. Our member agents continuously report the disparity in the number of homes available to rent against a backdrop of growing demand. Therefore, the UK Government must seriously address the fundamental issues that are affecting landlords’ affordability and the overall feasibility to invest in these essential homes and ensure resolutions are carefully considered to align with additional plans on employment and key infrastructure.

“It’s also important there is a full evaluation regarding future ‘new towns’ with any new proposals driving measurable success and delivering a solution that serves generations to come.”